There are many elements to consider here.
What does "loot" mean" Is it literally any item you pick up from a chest, body, crate, etc.? Is it only gear? Is it only gear with stats? Where are these lines drawn?
In general, I'm not a fan of being flooded with loot Diablo-style (Witcher 3 DID NOT have Diablo-style loot - if you think that, go play Diablo 3 again and then come back), and I don't like levelled loot period. I don't want to find a really cool jacket that I have to replace 20 minutes later because something else is better.
But I've thought about this more, and I've realized you have to be careful. For all of the issues with The Witcher 3's loot system, nobody can say you weren't able to create a unique look for yourself. If we throw all of the stats out the window and purely look at all the choices you have regarding how you want to look, I'd say that's a good thing, not a bad thing. I want variety in gear, and lots of it.
This is a tough situation. If items don't have stats, then players have less incentive to try different weapons and armor. This is probably one of the single biggest reasons CDPR has gone the route they've gone, despite its heavy contrast to the PnP's system. After all, this isn't a tabletop game where all "assets" exist in the player's head. It's a 3D RPG - everything has to be created by an artist. Why would they waste their time on dozens or 100+ articles of neat, varied clothing options when only a fraction will be used?
What if the only armor/clothing in Cyberpunk 2077 was 5 "Witcher sets"? For some, maybe that's OK. But in a Cyberpunk game where fashion is a big deal, I have to say "no thanks."
I'm not sure what the answer here is. At worst, mods can solve progression and de-level it, just as they've done with The Witcher 3.